Addressing a lunch in Brisbane yesterday for the Australian Institute of Company Directors, the boss of the world’s second-largest miner said uncertainties remained, but the potential for long-term growth remained strong.

“Uncertainties do cloud the sector’s short-term horizon such as the implications of continuing global economic instability, resource rents and climate change,” he told the luncheon.

“Like any industry, mining has its own range of challenging issues and the most recent example in Australia has been the issue of proposed taxation policy.

“Mining taxation is an important issue and any discussion of taxation policy must take into account international competitiveness.

“It also highlighted the crucial need for constructive discussions between the mining industry and the government.”

In illustrating the importance of Australia to Rio Tinto’s earnings, he said the country made the largest contribution to the group’s bottom line, generating $A15 billion.

Over the last decade, the major has spent $38.4 billion in the country, compared to a net profit after tax of $37.4 billion.

He also touched on the growing importance of China which accounts for one-quarter of the company’s revenues.

In the last decade alone sales to China have risen to nearly $US11 billion ($A12.38 billion) from $US400 million.

“But looking out even further, I believe there will be a continued shift of wealth and economic power from west to east,” he said.

More recently, the company reported underlying earnings of $US5.8 billion, more than double the amount generated in the first half of 2009.

This result, combined with a reduction in net debt to $12 billion, means the major is well placed to withstand “volatility or further shocks from the global economy”, Albanese added.

Shares in Rio Tinto are down 64c to $68.96 this morning.